SB758,8,74 (c) “Designee of a trust" means the person designated under sub. (5) (g) by a
5trust instrument or the trustee of a trust that is an account owner. If the person so
6designated is a married couple or domestic partnership, “designee of a trust" also
7means either spouse or partner.
SB758,8,88 (d) “Individual account owner" means any of the following:
SB758,8,99 1. In the case of an individual who is an account owner, that individual.
SB758,8,1010 2. In the case of a married couple that is an account owner, either spouse.
SB758,8,1211 3. In the case of domestic partners under ch. 770 that are an account owner,
12either domestic partner.
SB758,8,1413 4. In the case of a trust that is an account owner, the trust instrument or trustee
14of the trust.
SB758,8,1815 (e) “Manager” means a person that has contracted with the department under
16sub. (4) to perform the function of investing moneys for, administering, or promoting
17the long-term care investment program or performing any combination of those
18functions.
SB758,8,23 19(2) Program establishment; rules; information. (a) The department shall
20establish a long-term care investment program that is administered and promoted
21by a manager, for which investments are made by a manager, and that allows an
22account owner to establish a long-term care investment account to cover long-term
23care costs.
SB758,9,3
1(b) The department shall keep personal and financial information it has
2pertaining to an account owner, a designee of a trust, or a beneficiary closed to the
3public.
SB758,9,11 4(3) Selection of manager. (a) The secretary shall form a committee to
5recommend a manager and propose a contract to perform investment,
6administration, and promotion functions for the long-term care investment
7program. The department shall enter either one contract with one manager for all
8functions of investment, administration, and promotion for the long-term care
9investment program or multiple contracts with managers to perform one or more
10functions. The selection and contracting for each manager shall follow the procedure
11under this subsection.
SB758,9,2412 (b) The committee formed under par. (a) shall consist of 3 representatives from
13the investment board; one representative from the Wisconsin Aging Advocacy
14Network if the network exists or one representative from an aging advocacy
15organization if the network does not exist; and one representative from a disability
16advocacy organization. The secretary shall select as chairperson of the committee
17one of the representatives from the investment board. The committee shall
18recommend to the secretary a manager and propose a contract to be finalized by the
19manager and the secretary. The committee shall consider as a manager an entity
20that has a contract as a vendor of the college savings program under s. 16.255. The
21secretary shall accept or reject the recommended manager. If the secretary rejects
22the recommended manager, the committee shall recommend another manager until
23the secretary accepts the manager. The secretary shall dissolve the committee once
24a manager for each function described under par. (a) has been accepted.
SB758,10,4
1(4) Contract with manager; disclosure requirement. (a) The department's
2contract with a manager under sub. (3) shall include provisions establishing all of
3the following, as applicable to the function that the manager is performing for the
4long-term care investment program:
SB758,10,55 1. The manager's compensation including any management fee.
SB758,10,66 2. The fees, if any, the manager proposes to charge account owners.
SB758,10,97 3. That the manager performing the administrative function reimburses the
8state for all administrative costs that the state incurs for the long-term care
9investment program.
SB758,10,1510 4. That each account owner has electronic access to long-term investment
11account information and receives a quarterly statement that identifies the
12contributions to the long-term care investment account during the preceding
13quarter, the total contributions to and the value of the long-term care investment
14account through the end of the preceding quarter, and any distributions made during
15the preceding quarter.
SB758,10,1816 5. That each account owner receives an annual statement that identifies the
17contributions made to, the distributions made from, and the value of the long-term
18care investment account through the end of the preceding calendar year.
SB758,10,2019 6. The powers and duties of the manager to perform the applicable function of
20investment, administration, or promotion.
SB758,10,2221 7. Any additional, beneficial services provided by the manager to augment the
22long-term care investment account program.
SB758,11,323 8. The minimum initial contribution, if any, that the manager requires for a
24long-term care investment account. The manager may waive an initial contribution
25if the account owner agrees to contribute to a long-term care investment account

1through a payroll deduction or automatic deposit plan. The manager shall ensure
2that any automatic deposit plan permits the adjustment of scheduled deposits
3because of a change in the account owner's economic circumstances.
SB758,11,64 (b) A manager shall disclose to the department any interest that it or an owner,
5stockholder, partner, officer, director, member, employee, or agent of the manager has
6in a business or fund in which the manager invests.
SB758,11,97 (c) The contract requirements under s. 16.705 and the low bid and bid
8solicitation requirements under s. 16.75 do not apply to the procedure under sub. (3)
9and any contract under this subsection.
SB758,11,12 10(5) Account owners; beneficiaries; contributions; withdrawals; termination
11of investment accounts.
(a) Each application for a long-term care investment
12account shall meet all of the following criteria:
SB758,11,1413 1. The account owner is an individual, a married couple, domestic partners
14under ch. 770, or a trust other than a special needs trust.
SB758,11,1615 2. Each individual account owner has attained the age of 18, unless the account
16owner is a trust.
SB758,11,1817 3. Each individual account owner is a citizen of the United States or has United
18States permanent resident status, unless the account owner is a trust.
SB758,11,2019 4. Each individual account owner, and each designee of a trust if a trust is the
20account owner, is listed on the application.
SB758,11,2121 (b) An account owner may do all of the following:
SB758,11,2322 1. Contribute to a long-term care investment account or authorize a person to
23contribute to the account.
SB758,11,2424 2. Select or change a beneficiary of a long-term care investment account.
SB758,12,2
13. Transfer all or a portion of a long-term care investment account to another
2long-term care investment account at the choice of the account owner.
SB758,12,43 (c) An account owner may use a long-term care investment account to pay
4long-term care costs of any individual account owner or designee of a trust.
SB758,12,75 (d) 1. A guardian, as defined in s. 54.01 (10), may establish a long-term care
6investment account on behalf of an account owner who is the guardian's ward and
7may act on behalf of the account owner for all purposes under this subsection.
SB758,12,118 2. An individual may name an agent under a power of attorney, as defined in
9s. 244.02 (9), to act on behalf of him or her to establish an account with the individual
10as account owner and to act on behalf of the account owner for all purposes under this
11subsection.
SB758,12,1912 (e) 1. A long-term care investment account terminates upon the death of the
13individual account owners, or, if applicable, upon the occurrence of the event
14designated under par. (g), and the proceeds of the account are distributed to the
15beneficiary, including any primary, secondary, or contingent beneficiary, if named by
16the account owner on a form created by the manager. If no beneficiary is named, the
17proceeds are distributed to the individual account owner's estate, or, if applicable,
18the estate of the designee of a trust, and the estate is liable for any income taxes due
19on the distribution.
SB758,13,220 2. If a beneficiary obtains the proceeds of the account upon the death of the
21individual account owners, the beneficiary may retain the account as a long-term
22care investment account and becomes the account owner if the beneficiary meets the
23criteria under par. (a). If the beneficiary does not retain the long-term care
24investment account and instead liquidates the account, the beneficiary is liable for

1any income taxes due on the proceeds. A beneficiary may disclaim the proceeds of
2the account.
SB758,13,43 3. For purposes of this paragraph, a trust may be designated as a beneficiary
4or a beneficiary may designate a trust to be an account owner.
SB758,13,135 (f) For purposes of establishing a long-term care investment account and for
6purposes under this subsection, an act of an account owner that is a married couple
7or domestic partnership requires the affirmative consent of both individual account
8owners of the couple or partnership except that a qualified use of long-term care
9investment account funds may be made by an individual account owner of the couple
10or partnership. For a long-term care investment account that has already been
11established, an account owner that is a married couple or domestic partnership may
12authorize, using a form created by the manager, an individual account owner to act
13on behalf of the account owner that is a couple or partnership.
SB758,13,2214 (g) At the time a long-term care investment account is established for an
15account owner that is trust, the trust instrument or a trustee acting on behalf of the
16trust must designate an individual, married couple, or domestic partnership for
17whom qualified use of long-term care investment account funds may be made and
18an event that terminates the long-term care investment account under par. (e). The
19individual, married couple, or domestic partnership designated in the trust
20instrument or by the trustee for qualified use of long-term care investment account
21funds shall meet the requirements under par. (a) for an account owner, except that
22a designated individual does not need to have attained the age of 18.
SB758,14,2 23(6) Qualified uses of account funds. (a) Before a qualified use of long-term
24care investment account funds may be made under par. (b), a licensed or certified
25health care professional, such as a physician, nurse, or social worker, shall submit

1to the applicable manager on behalf of the account owner written documentation of
2one of the following events or conditions:
SB758,14,53 1. Admission to a medical or long-term care facility, including at a hospital,
4skilled nursing facility, rehabilitation facility, nursing home, hospice care facility, or
5mental health care facility, that is expected to last at least 90 days.
SB758,14,76 2. Admission to an assisted living facility that is expected to last at least 90
7days.
SB758,14,88 3. Need for home health care for at least 90 days.
SB758,14,109 4. Need for inpatient or outpatient mental health services that is expected to
10last at least 90 days.
SB758,14,1211 5. Need for durable medical equipment the use of which is expected to last at
12least 90 days.
SB758,14,1413 6. Need for care in the home to assist with personal care, meal preparation,
14housekeeping, medications, and money management for at least 90 days.
SB758,14,1515 7. Need for staff or assistance to allow for caregiver respite.
SB758,14,1716 8. Need for transportation assistance to medical appointments that is expected
17to last at least 90 days.
SB758,14,1918 9. Need for funeral planning upon the death of an individual account owner or
19designee of a trust as indicated by a death certificate.
SB758,14,2120 10. Need for other long-term care services determined acceptable by a team of
21benefit specialists.
SB758,14,2322 (b) Except as provided in pars. (c) and (d), the manager shall consider as
23qualified uses of long-term care investment account funds only all of the following:
SB758,14,2424 1. In-home, long-term care services.
SB758,14,2525 2. Payment of room and board in facilities specified in par. (a) 1. or 2.
SB758,15,1
13. Caregiver respite services.
SB758,15,22 4. Transportation to medical appointments.
SB758,15,53 5. Other long-term care services as considered appropriate by a licensed or
4certified health care professional, such as a physician, nurse, or social worker, of an
5individual account owner or designee of a trust.
SB758,15,66 6. Equipment necessary for quality of life.
SB758,15,87 7. Funeral expenses or estate expenses of a deceased individual account owner
8or designee of a trust.
SB758,15,99 8. Medical expenses not covered by another payer.
SB758,15,1310 (c) The manager shall consider as a qualified use of long-term care investment
11account funds payment of a premium for long-term care insurance that meets
12criteria set by the department, in consultation with the office of the commissioner of
13insurance, without documentation of an event or condition described under par. (a).
SB758,15,2014 (d) An expense that is paid by health insurance or a public benefit program is
15not a qualified use of long-term care investment account funds. An account owner
16shall seek any coverage by his or her health insurance policy or plan or a public
17benefit program before using long-term care investment account funds. An account
18owner may use long-term care investment account funds for copayments,
19coinsurance, or deductibles for which the account owner would be responsible to pay
20out-of-pocket.
SB758,15,2221 (e) The manager shall establish a procedure for making payments directly to
22a 3rd party for a qualified use.
SB758,15,25 23(7) Contracts with professionals. A manager may enter into a contract for
24the services of accountants, attorneys, consultants, and other professionals to assist
25in the administration and evaluation of the long-term care investment program.
SB758,16,6
1(8) Report. Annually, each manager shall submit to the department a report
2on the performance of the long-term care investment program, including any
3recommended changes to the program. The department shall compile the reports,
4if necessary, and make the report available on the department's Internet site and
5shall submit the report to the appropriate standing committees of the legislature
6under s. 13.172 (3).
SB758,16,9 7(9) Construction. Nothing in this section guarantees a rate of interest or
8return on a long-term care investment account or the payment of principal, interest,
9or return on a long-term care investment account.
SB758,16,12 10(10) Exemption from garnishment, attachment, and execution; security for
11loan.
(a) An account owner's right to qualified withdrawals under this section is not
12subject to garnishment, attachment, execution, or other process of law.
SB758,16,1413 (b) No interest in a long-term care investment account may be pledged as
14security for a loan.
SB758,16,21 15(11) Eligibility for public assistance programs. (a) An individual account
16owner or designee of a trust is not eligible for Medical Assistance under subch. IV of
17ch. 49, a long-term care program under s. 46.27, 46.275, or 46.277, the Family Care
18benefit under s. 46.286, the Family Care Partnership program, or the long-term care
19program defined in s. 46.2899 (1) until the individual first spends down the income
20and assets from the long-term care investment account as necessary to meet the
21eligibility requirements of the applicable program.
SB758,17,222 (b) Any person who is determining eligibility for a program that is not described
23in par. (a) and does not provide long-term care services shall exclude from the
24determination any income from or assets accumulated in a long-term care
25investment account for the account owner or designee of a trust created under this

1section. This paragraph does not apply to determination of eligibility for a federal
2program unless approved by the federal government.
SB758,17 3Section 17 . 815.18 (3) (q) of the statutes is created to read:
SB758,17,54 815.18 (3) (q) Long-term care investment accounts. An interest in a long-term
5care investment account under s. 146.92.
SB758,18 6Section 18 . Initial applicability.
SB758,17,87 (1) The treatment of sections 71.05 (6) (b) 53., 54., and 55. and 71.07 (5) (a) 10.
8of the statutes first applies to taxable years beginning on January 1, 2017.
SB758,17,99 (End)
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